ECG Landed Property Collection?

[Arcachon]

he/she did not reveal the amount of reserves. Incomplete picture

You are right, got a fully paid 3 room HDB brought for my in law. Brought in 1995 for $65,000 after $30,000 discount from the gov. now val at $300,000.

A little bit of cash from the sale of 4 room in 1995. Some saving from my stay in the US. Saving from not driving in Singapore. Saving for staying in France for the last 5 years.

What I like to share is, buy what you can afford. For investment buy for somebody else to pay the mortgage for you. I use to look at my salary and wonder how can I afford the million dollar PC, now I wonder who is paying for my next PC.

[Arcachon]

I have stop looking at income to debt ratio, but look at how much I can afford to lose and the chance of losing it. At the rate FED, ECB, UK, China is printing money, I would rather borrow from the bank money than save my money in the bank.

Anyone can lent me some spare cash to buy my next PC.

[Blue]

For a purchase price of $2.5M inter-terrace, 80% loan is $2M. At current interest rates, monthly instalment is $5,152 for max loan tenure of 40 yrs (assuming your age is <35yrs). You can work out how much income your family has to support this monthly instalment. And worst case if interest rate goes up to 5%!

[howgozit]

Oh my.... I am really out of touch with bank loans these days, wasn't aware that banks allow repayment periods up to 75 years of age. I would think it is too liberal of the bank.

No wonder property prices are shooting up... now everybody can lend to the hilt. Banks should be audited for financial prudence. This kind of thing is inflating the bubble.

For a purchase price of $2.5M inter-terrace, 80% loan is $2M. At current interest rates, monthly instalment is $5,152 for max loan tenure of 40 yrs (assuming your age is <35yrs). You can work out how much income your family has to support this monthly instalment. And worst case if interest rate goes up to 5%!

[Arcachon]

Oh my.... I am really out of touch with bank loans these days, wasn't aware that banks allow repayment periods up to 75 years of age. I would think it is too liberal of the bank.

No wonder property prices are shooting up... now everybody can lend to the hilt. Banks should be audited for financial prudence. This kind of thing is inflating the bubble.

SINGAPORE - Taxi drivers are now permitted to work until they reach the age of 75, according to a latest statement from the Land Transport Authority (LTA).

http://motoring.asiaone.com/Motoring...13-339497.html

http://www.expatliving.sg/article/pr...re-august-2011

[Arcachon]

3. Determine your loan tenure.
The maximum loan tenure is 40 years; however, the tenure can be less depending on the borrower’s age. With joint applicants, the loan tenure plus the age of the youngest borrower cannot exceed 75 years.

[chiaberry]

OK then bros/sis. Let's keep ourselves healthy and in a suitable job that can sustain our income until age 75. The "new" "retirement" age in our new age of super super long housing loans. What job is "safe" until age 75?

[Arcachon]

OK then bros/sis. Let's keep ourselves healthy and in a suitable job that can sustain our income until age 75. The "new" "retirement" age in our new age of super super long housing loans. What job is "safe" until age 75?

Taxi driver.

[Arcachon]

http://www.ura.gov.sg/lad/HBG/basicCheck.htm

Buying a new apartment, flat or house may probably be your single largest investment. Hence, before you even visit a showflat or view any unit, it is important that you familiarise yourself with some existing Government policies which may affect you.

[howgozit]

OK then bros/sis. Let's keep ourselves healthy and in a suitable job that can sustain our income until age 75. The "new" "retirement" age in our new age of super super long housing loans. What job is "safe" until age 75?

I would think up to 65 years old was already stretching it.

The banks' risk management assessment has assumed a perpetual escalation of assets. I wonder how many people actually loans up to 75years old... we are in danger of becoming like Japan.... multi-generational debt.

I wouldn't want to be in debt for so long.

[Arcachon]

https://www.cpf.gov.sg/cpf_trans/ssl...fford_calc.asp

Home Affordability Calculator

[howgozit]

I am afraid this calculator doesn't tell a person very much about home affordability even if it is called one.

https://www.cpf.gov.sg/cpf_trans/ssl...fford_calc.asp

Home Affordability Calculator

[yjcai]

http://www.kwaves.com/fiat.htm

1971 - FLOATING - Fiat currency, 5 months
August of 1971 President Nixon ended the international gold standard and for the first time no currency in the world had a gold backing.

1971-1973 - FIXED - Dollar standard, 2 years
The Smithsonian Agreement was passed pegging world currencies to the dollar rather than gold as a fixed exchange rate.

1973-? - FLOATING - Fiat currency, 30 years
The Basel Accord established the current floating exchange of currency rates we are operating under today.

Can MAS increase the interest rate when FED is printing money.

The answer is no. SG is a country where capital mobility and stable exchange rate are a must. For this they will lose interest rate as a monetary tool. Maybe can google on impossible trinity.

[Arcachon]

The answer is no. SG is a country where capital mobility and stable exchange rate are a must. For this they will lose interest rate as a monetary tool. Maybe can google on impossible trinity.

What about FED stop printing money and raise interest rate is it possible after they have print in QE1,QE2 and Operation Twist?

[Blue]

I would think up to 65 years old was already stretching it.

The banks' risk management assessment has assumed a perpetual escalation of assets. I wonder how many people actually loans up to 75years old... we are in danger of becoming like Japan.... multi-generational debt.

I wouldn't want to be in debt for so long.

I doubt anyone would want to service loan until 75 yrs old. Mostly would have sold the property by 30 yrs. In any case, the land is still worth something at the end of day, so it will pay off by itself. Downgrade when reach retirement age and cash out to enjoy life before going inside the coffin.

But for the purpose of taking a loan, the longer tenure you stretch is better so your monthly instalment is not so high. Why think so far ahead when u dun even know if you can live tat long.

[wind30]

The answer is no. SG is a country where capital mobility and stable exchange rate are a must. For this they will lose interest rate as a monetary tool. Maybe can google on impossible trinity.

I thought singapore was going raise the value of singapore dollar to curb inflation. Does that mean they can raise interest rates up a little?

[howgozit]

I doubt anyone would want to service loan until 75 yrs old. Mostly would have sold the property by 30 yrs. In any case, the land is still worth something at the end of day, so it will pay off by itself. Downgrade when reach retirement age and cash out to enjoy life before going inside the coffin.

But for the purpose of taking a loan, the longer tenure you stretch is better so your monthly instalment is not so high. Why think so far ahead when u dun even know if you can live tat long.

While the individual may not want or plan to service a loan till 75, the bank should be more prudent than allow him to do so in the first place.

It cannot be assumed that when you want to sell your property it will be at the price that you want. The '97 crisis made many bankrupt. Those who bought btw 95-97 took abt 10 years just to recover to the original price.

[bullman]

hi guys,

Just to revert to the topic of this thread:

Landed market is really shooting through the roof now. You can't really find any decent inter-terrace for less than 1.8 mil nowadays. Those available are mostly small land size of around 1000 sqft, which translate to very high land psf.

Had a frustrating past 2 months.

[Rosy]

Due to increasing new citizens?

[chiaberry]

Who was the forum member who sold 2 landed properties not so long ago? Should be

[lajia]

Due to increasing new citizens?

i think partially due to condo pricing which is very far higher than landed in terms of psf. the gap needs to be closed and it will....i believe.

[Rosy]

i think partially due to condo pricing which is very far higher than landed in terms of psf. the gap needs to be closed and it will....i believe.

It has always been the case.

[Blue]

While the individual may not want or plan to service a loan till 75, the bank should be more prudent than allow him to do so in the first place.

It cannot be assumed that when you want to sell your property it will be at the price that you want. The '97 crisis made many bankrupt. Those who bought btw 95-97 took abt 10 years just to recover to the original price.

The longer the tenure, the better for the borrowers, so tat u can reserve funds in case of crisis period when banks start to make margin calls. Always buy with reserve funds tat can last u at least 5 yrs of instalment payment and u shld be quite safe.

If u keep worrying abt prices reaching peak and going to fall, u may
miss many boats and end up losing out, letting ur money in the bank rot as inflation devalues ur dollars!

[howgozit]

The longer the tenure, the better for the borrowers, so tat u can reserve funds in case of crisis period when banks start to make margin calls. Always buy with reserve funds tat can last u at least 5 yrs of instalment payment and u shld be quite safe.

If u keep worrying abt prices reaching peak and going to fall, u may
miss many boats and end up losing out, letting ur money in the bank rot as inflation devalues ur dollars!

Totally agree.... no problem for the borrowers, works in their favour. No wonder prices are soaring...

I was referring to the prudence on the banks part.

Not many have 5 yrs worth of instalment payments in savings like you say. In fact, many don't even have the bare minimum of 6mths. Many buying the new launches are squeezing by on the loophole progress payments that defers the full 40% upfront.

Of course the 60% LTV also gives the banks a lot of buffer... perhaps that is why they have become so liberal.

[howgozit]

i think partially due to condo pricing which is very far higher than landed in terms of psf. the gap needs to be closed and it will....i believe.

At current psfs I think landed still has more value than condos... I don't think current landed pricing is ridiculously high, its the condo pricing that is ridiculously high.

High-rise living is high density living it should rightly be cheaper than landed living. But this is not the case as reflected by the prices.

[bullman]

Due to increasing new citizens?

I do not think so, most of those who turn up for viewing are young couples in their early 30s. I guess they figured out that landed property makes more sense now, given the high price of condo units.

[land118]

I do not think so, most of those who turn up for viewing are young couples in their early 30s. I guess they figured out that landed property makes more sense now, given the high price of condo units.

Yes, you are right. Locals who are doing well, finding better value in landed...Also, those who have frequent visitors, biz friends to entertain, landed more exclusive & convenient....

[bullman]

At current psfs I think landed still has more value than condos... I don't think current landed pricing is ridiculously high, its the condo pricing that is ridiculously high.

High-rise living is high density living it should rightly be cheaper than landed living. But this is not the case as reflected by the prices.

I guess quite a few has arrived at the same conclusion, thus explaining the rush to grab land that is low in quantum, i.e. below 2 mil

[bullman]

Yes, you are right. Locals who are doing well, finding better value in landed...Also, those who have frequent visitors, biz friends to entertain, landed more exclusive & convenient....

Just surprised by the purchasing power of this new emerging class. Most bought HDB as their first purchase and has satisfied the MOP. They mentioned that they wish to upgrade directly to a landed rather than a condo given the small gap in prices absolutely, if they were to purchase a reasonable size 3 BR

[buttercarp]

Luxus Hills now got people advertise 3 mil for 1615sq ft .